This Phoenix Mortgage Rates Report is a SPECIAL EDITION: Why it makes sense to refinance…TODAY.

If refinancing the mortgage, for your home in Phoenix, has been on your mind, two things just happened which should compel you to do just that:

1- 30 year fixed rate mortgages dropped below 6% for the first time since October, 2005. While I am a staunch advocate of ARMs, as the least expensive mortgage, Wall Street seems to be rewarding the credit-worthy borrowers who are willing to lock-into a fixed rate mortgage. Wall Street may be trying to push people into locking into loans, because they believe that rates are dropping, but I think that a fixed rate loan under 6% is about as good as it gets.

2- Fannie Mae and Freddie Mac are about to make borrowers jump through more hoops…again. Next month, borrowers who do NOT have a FICO score of at least 680 will be assessed with a healthy penalty; 1-2% of the loan amount. What that means is that the interest rate charged could be as much as .75% higher than the rates offered to borrowers with stellar credit (or the cost of the loan will be 1%-2% more).

If you are holding out for lower mortgage rates, that may happen next month. You might be left out in the cold if your credit score isn’t high enough. I’ve seen people who have perfect credit histories with a credit score under 680 so don’t get cocky; this could happen to you ! While rates could drop another .25%, you could be forced into a rate that is .25 higher than you could get today.

ACTION PLAN: Call me today at 858-699-4590 for a mortgage rate review.

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Tags: Real Estate Financing, Tips for Buyers //